Supervisors discuss recent ruling that sends County's property tax dispute with SHF to trial

by Bob Beach

During its regular meeting Monday, July 16, the Allamakee County Board of Supervisors met in closed session with Allamakee County Attorney Jill Kistler, Allamakee County Treasurer Lori Hesse and by telephone with attorney Wes Huisinga regarding a recent court ruling in the County’s tax property dispute with SHF Industries, LLC, owners of the former Agriprocessors facility in Postville.
According to the ruling issued July 6 by U.S. Chief Bankruptcy Judge Thad Collins, the court ruled in January this year that over $500,000 in property taxes owed to the County were not negated by the sale of the property to SHF at the bankruptcy sale. Whether those taxes must be paid by the bankruptcy trustee or by SHF remains in dispute, and the court's most recent ruling indicates that a trial will need to be held in order to determine a proper remedy.
“The Court concludes, by noting again, that these proceedings came before the Court at summary judgment. In spite of the numerous hearings, and pages of briefing and court rulings, the case to date has been entirely presented on arguments in summary proceedings. Not a single witness has testified in court. The record has focused almost entirely on the parties’ right to relief - not the appropriate remedy... the fact the equities appear to favor the County, does not mandate - or even allow - the Court to dispose of the case on paper,” Collins wrote.
The Board also met with Central Point of Coordination Director Jan Heikes, who told the Board that she has been appointed to serve on a “transition committee” regarding the regionalization of mental health and developmental disabilities services in the state. Heikes said she will serve on that committee with Bob Lincoln, who has formed a group of 18 counties in the regionalization process. Heikes also presented the Board with a resolution to participate in planning with six other northeast Iowa counties to form a regional 28E agreement. The Board approved and signed the resolution.
County Treasurer Lori Hesse presented her annual report to the Board, noting an ending balance of $7.7 million, approximately a million dollars less than the same time last year. She also noted that she has taken $1.6 million out of investments since the end of June to pay bills. With no money coming into the County’s coffers until tax statements are sent out, Hesse said that the situation is not critical, but it is a “watchful time.” She added that she will alert the Board if cash reserves drop below five million dollars. The Board accepted the report and placed it on file.
County Engineer Brian Ridenour was present for the opening of bids for the replacement of a bridge on Brady Drive. Brennan Construction of Lansing submitted the low bid of $221,529.24. Also bidding on the project were K Construction of Elkader ($258,512.74) and Minnowa Construction of Harmony, MN ($312,551.20). Ridenour said the bids were higher than he expected and that he will review them and return to the Board next Monday with his recommendation.
Relief Director Linda Kruse asked the Board for approval to hire Rebecca Hawes as Assistant Office Manager starting August 1 at an annual salary of $27,300. Hawes will replace Kruse as Relief Director following her retirement in December. The Board approved Kruse’s request.
In other business, the Board voted to disallow several homestead and military tax credits and signed a proclamation declaring July 28 to be National Korean War Veterans’ Armistice Day.